How Do Federal Government Employees Get Away With Not Paying Their Taxes?

Bruce Bialosky

•   June 6, 2026

We have known for some time that our federal employees have cushy lives compared to the people for whom they work (us). What is particularly infuriating is that so many of them either don’t pay their taxes or are seriously delinquent on what they owe their employer—the federal government.

Recently, the Treasury Inspector General for Tax Administration found in a new report showing that 6.9% of federal employees are delinquent on their IRS taxes. That amounts to about 215,000 employees. This is a marked increase in three short years from 4.9%. It is appalling that the rate was previously as high as it was, but it has now hit crisis level, seemingly with little or no consequences. This is in contrast to a 5% delinquency rate among the general population.

The number of delinquents exploded during the Biden administration, which was lax on enforcing anything for favored groups. We can only speculate as to why federal employees felt they had the right to forgo paying their taxes. It might be Biden allowing so many people to go without repaying their student loans that encouraged the government’s employees to skip payments.

The fascinating aspect of this is that these employees are W-2 wage earners who have withholding taken out of their paychecks. The government can easily enforce additional withholding to make sure its employees are in compliance. The feds can easily garnish workers’ wages, as they certainly know where they work. Indeed, the feds do this all the time to ordinary citizens.

Worse, about 2,000 of these culprits work for the IRS. It is estimated that their back debt is $50 million. As of 2024, the most recent year for which data is available, there are about 50 employees who have been delinquent for more than five years. Yet these people still work for the agency collecting taxes from the public. There have only been 20 employees terminated for nonpayment in recent years.

Nongovernmental professionals who help American citizens comply with the maze of tax laws to properly file their personal returns have significant requirements to stay current on their tax filings and payments.  

The broadest manner in which the feds control tax preparers is through the Preparer Tax Identification Number (PTIN). These numbers became mandatory in 2010. It allows the feds to track anyone who is a preparer. The preparer must renew annually and must attest to the fact that he or she is current on tax filing and payments. If the preparer is not current, the preparer’s right to file taxes will be suspended.

Of course, we know it is illegal to lie to the federal government in these situations. As usual, government likes to punish people with penalties. If someone files a return without a valid PTIN, there is a $530 penalty per return.

There is another mandatory number tax professionals receive to be able to file tax returns electronically. That number is an Electronic Filing Identification Number (EFIN). The IRS conducts continuous surveillance of tax preparers to monitor their compliance with tax laws and, if someone is not current, they will suspend the tax professional’s right to file.

There is an even higher standard for CPAs and tax attorneys. The IRS issues a document called Circular 230 for code of conduct for tax professionals. I once asked if there was a similar document for conduct of IRS employees. Not surprisingly, the answer was no. The failure to file or pay taxes can permanently disbar these professionals from representing clients or signing tax returns.

This is the way the government treats ordinary Americans regarding tax filings or delinquencies. It is an understatement to say that dealing with the IRS can be very harsh and incomprehensible. It would be nice to know if our federal employees delinquent on their taxes were receiving similarly harsh treatment for their errant liabilities.

When American citizens are working hard and complying with the tax laws, they should have no tolerance for their federal employees failing to file and pay their taxes on time. It seems natural that, in order to work for the federal government, employees should be current on their taxes, just like tax professionals must.

Working for the government is a privilege, not a right. To maintain that privilege, employees should be required to file and pay their taxes on time. Lax enforcement of this standard must end. The American people should demand this.

We publish a variety of perspectives. Nothing written here is to be construed as representing the views of the Daily Signal.

Bruce Bialosky | Contributor
Bruce Bialosky is a former presidential appointee, a practicing CPA with a specialty on tax law and founder of the Republican Jewish Coalition of California.

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